New York 2025-2026 Regular Session

New York Senate Bill S08259

Introduced
5/28/25  
Refer
5/28/25  

Caption

Relates to orders of conservation for domestic insurers.

Summary

This bill amends the New York Insurance Law provisions governing conservation proceedings for insurers. Its main purpose is to extend and clarify the Superintendent of Financial Services’ authority when a domestic insurer is placed into conservation, and to update related language throughout the statute. The bill also makes conforming changes to references involving foreign and alien insurers, including gender-neutral wording and procedural updates for ancillary receivership. Under the bill, when the superintendent is appointed conservator of a domestic insurer, the conservator must analyze the insurer’s business and financial condition and may take actions needed to correct the problems that led to conservation and restore the insurer to private management and normal operations. The bill also adds a procedure allowing the superintendent, in certain reciprocal-state situations, to be appointed as ancillary receiver for a foreign or alien insurer when a domiciliary receiver is appointed elsewhere. The measure applies immediately to conservation appointments made on or after its effective date.

Impact

The bill would amend sections 7406 and 7407 of the Insurance Law, expanding and clarifying the statutory framework for conservation and ancillary receivership of insurers. It specifically adds domestic insurers to the conservation grounds and procedures, requires a more explicit remedial review by the conservator, and updates the superintendent’s authority in reciprocal-state insolvency situations. The practical effect is to strengthen the state’s tools for intervening in troubled insurers and to align the statute with modern drafting and cross-jurisdictional insolvency practice.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be a technical and administrative insurance regulation bill rather than a controversial policy change. Its language is focused on clarifying authority, updating procedures, and improving consistency in the Insurance Law. No recorded opposition or support is available in the provided materials, but the bill’s framing suggests a generally neutral or favorable reception among insurance regulators and practitioners.

Contention

The main substantive issue is the scope of the superintendent’s authority over domestic insurers in conservation and the addition of a formal duty to analyze the insurer’s condition and pursue restoration to private management. Another point of potential interest is the new reciprocal-state ancillary receivership process, which may affect coordination between New York and other jurisdictions in insurer insolvencies. Because there are no transcripts or votes provided, no specific stakeholder objections are documented, but insurers, receivers, and regulators would be the parties most directly affected.

Companion Bills

NY A10084

Same As Relates to orders of conservation for domestic insurers

Previously Filed As

NY A10084

Relates to orders of conservation for domestic insurers.

NY S08258

Relates to the administrative supervision of insurers deemed to be in a hazardous financial condition.

NY A10090

Relates to the administrative supervision of insurers deemed to be in a hazardous financial condition.

NY HB1151

Provides relative to the equity and investments of domestic insurers

NY S02280

Requires law enforcement officers to conduct a lethality assessment as part of the standardized domestic incident report form when responding to incidents of domestic violence.

NY S07619

Provides for self-attestation for victims of domestic violence.

NY A08327

Prohibits the sale of birds at retail pet shops; provides exceptions for certain domesticated game birds and other birds including chickens, turkeys, guinea fowl, peafowl and pigeons.

NY A09538

Establishes a publicly accessible online registry for individuals convicted of a second or subsequent domestic violence offense.

NY S08366

Permits family leave benefits related to the active service of a spouse, domestic partner, child, or parent of the employee in the New York national guard during a declared state of emergency or other ordered active state service.

NY S08343

Extends certain exemptions from regulatory requirements necessitating prior approval of rates and forms for large, commercial insureds.

Similar Bills

No similar bills found.